Odgers Berndtson - News & Knowledgehttp://www.odgersberndtson.caThe latest Odgers Berndtson News & KnowledgeTYPO3enAttracting Toronto’s Top Talenthttp://www.odgersberndtson.ca/ca/news-knowledge/article/attracting-torontos-top-talent-8882/http://www.odgersberndtson.ca/ca/news-knowledge/article/attracting-torontos-top-talent-8882/The Toronto region currently ranks among the top five cities and business centres in North America.

As Canada’s largest metropolitan centre, the vast majority of national and multi-national companies are headquartered in the Toronto region. Our city-region boasts a strong financial services sector and a number of burgeoning industry clusters—all of which are significant talent attractors. The region is also a leader in human capital, possessing a large and diverse pool of highly educated, skilled and specialized talent.

It seems like a recipe for the perfect mix of talent supply and demand. Yet a rapidly changing and increasingly global economy, forever altered by disruptive technologies and demographic shifts, is making it challenging for talent management in every organization to connect talent with jobs and jobs with talent.

So how does a business attract the right talent to stay competitive in times like these? OnBoard explores what Toronto companies are doing to attract the best and brightest—and why it’s important for businesses and the economy.

The Changing Landscape of Talent Management

Attracting the best and brightest in this new economic landscape is something Carl Lovas, Canadian Chairman of Canada’s leading and largest executive search firm, Odgers Berndtson, knows well. The executive search industry grew globally by 12 per cent last year; a notable statistic considering the relatively flat global economic growth. He believes this shift is due to a number of factors, the most significant being a new focus on the importance of good leadership to an organization. “The world has finally concluded that talent can have a huge impact, in fact, more of an impact than anything else in an organization, particularly when it comes to executive talent,” he explains. “Organizations focus on leadership more than ever before.”

Mr. Lovas also points to the imbalance of supply and demand as a factor. “People have been talking about demographics, and the war for talent and baby boomers retiring for over a decade, but now we are really seeing that have some traction,” he explains. Toronto is poised for a significant shift in the labour force over the next decade. A labour market demand forecast, published as part of the Toronto Region Board of Trade’s 2014 Closing the Prosperity Gap report, projected an expected 271,700 vacancies from retiring older workers; and that number does not include jobs created through economic growth.

“Imagine the next 10 years,” notes Mr. Lovas. “This situation is creating a genuine talent shortage that makes recruiting more challenging.” This, of course, is why executive search continues to grow as an industry. “Our clients turn to us when recruiting becomes difficult.”

For executive talent, it is becoming a job seekers’ recruitment market. But increasingly this extends to other levels of employment. According to a Manpower survey conducted in Q1 of 2015, 34 per cent of employers across the Americas have difficulty filling jobs due to a lack of suitable applicants—up from 25 per cent in 2014.

Reputation Counts

So how are companies today attracting the right talent? A recent study from LinkedIn found that 59 per cent of Canadians say a company’s reputation as a great place to work is the single most important factor when considering a new job. The increasing importance of employer brand is something many Toronto-based companies are now embracing. In the late 2000’s companies began developing completely fleshed out brand propositions, marketed with the same fervor and consistency as consumer branding.

The reality for businesses today is that the digital revolution not only changed business needs, it altered the ways in which information is shared. Social media, online industry hubs, and sites like Glassdoor give a new level of transparency to corporate culture. Quite simply, an unfavourable company reputation can do damage to a company’s recruiting efforts.

Equally, a positive company reputation can be a significant attractor for job seekers. Numerous awards throughout the GTA, such as the Greater Toronto Top Employers list, released annually, or the Board’s Business Excellence Awards - Employer of The Year Award, showcase organizations that offer a positive company culture and environment, and use it to better their business results.

Employer Branding

Smart companies have embraced this shift, and employer branding is no longer the sole domain of the HR department. An integrated team of HR, marketing and communications professionals jointly manage employer brand strategy. In fact, barely a third (36 per cent) of employer brand strategies are still managed by HR alone. This demonstrates an understanding that who you are and what you do as a company is only part of the puzzle. Effectively communicating that message is an essential part of ongoing talent recruitment and management.

Andrea Richardson, Director of Global Human Resources at Toronto-based company Infusion, has witnessed the industry shift over her decade long tenure with the company. “Social networking has transformed the way we make decisions about products and careers. Candidates are choosing which companies they want to work for based on employee testimonials and recommendations,” she explains. “Companies are investing in talent branding as a strategic priority to attract, engage and retain candidates and employees.”

That branding responsibility goes even further, according to some sources, stretching to the CEO. A 2015 report from the Harvard Business Review found that 60 per cent of CEOs surveyed believe employer brand responsibility lies with the CEO. This aligns with the continually evolving role of leaders or “the ever-higher bar being set for executives,” as Mr. Lovas calls it. In the digital media age, the public face of a company is in and of itself a powerful talent attractor.

Analyzing Talent Attraction

Branding is one thing. Successfully attracting key talent in a market that favours highly skilled job seekers means that companies need to be aggressively competitive in their recruitment offers. Market-competitive salaries are a must and still remain a key factor in attracting the right talent. Accurate compensation information is a critical tool, and can be discovered through resources, such as the Board’s Compensation Reports, an annual compensation benchmarking tool for companies in the Toronto region for more than 60 years.

This is only the tip of the iceberg; Toronto region companies today must ensure they offer a great place to work. How you treat your employees and support them to grow professionally is essential to retaining high achieving talent.

Employees today have an expectation beyond compensation; they expect recognition, support, and yes—perks. Accenture offers top-up for maternity and paternity leave, and subsidies for employees requiring IVF treatments. Rogers Communications offers a share purchase plan and flex hours. Scotiabank has an onsite daycare, a rare and attractive perk that sets it apart from the competition. Small businesses frequently sell themselves through their workplace culture, which could be anything from offering a games room to blow off steam, unlimited vacation time, or a flat organizational structure.

A positive workplace generates higher productivity and revenues, but the focus on workplace culture is also important because the average career trajectory has changed significantly in the Toronto region. Twenty-eight per cent of Canadians have held between 5 and 10 jobs throughout their career, and another 16 per cent have held more than 10, according to a report from Workopolis. The evolution of work continues to shift towards more jobs, for less time, across all demographics.

Mr. Lovas notes this shift in the executive market as well. “You’ve gone from an environment where people joined an organization and stayed there for life, to one where people move frequently...between industries, and between companies.”

Thinking Globally about Talent

Mr. Lovas also indicates that the Toronto region’s talent opportunities and challenges are increasingly global in scale. On a broad economic level the region has concentrated industry clusters that drive growth and, as such, require highly specialized talent. Particularly as many of our region’s businesses expand their international footprint, that global knowledge and experience becomes increasingly important. The financial services sector, arguably the backbone of Toronto’s economy, continually shifts towards more foreign investment. For example, more than 70 per cent of Canadian Pension assets are invested internationally. Canada Pension Plan Investment Board (CPPIB) President and CEO, Mark Wiseman stresses the importance of international knowledge, noting that nearly 75 per cent of senior employees at CPPIB have international experience.

The 2015 edition of the Board’s Scorecard on Prosperity report highlights the value of our diverse, multicultural population, noting the untapped potential of our vast immigrant population. More than half of our population is foreign-born. These professionals have connections and specialized knowledge in their countries of origin, but businesses are not taking full advantage of these talented individuals. Cultivating these relationships offers a strategic advantage for businesses looking to open up new revenue streams in high-growth markets.

Growth in those markets is essential for the prosperity of our region, but they also influence our own talent pool. “What’s happening in places like Singapore and Hong Kong is that these emerging markets are drawing talent in… resulting in an outflow of talent being drawn to these places,” explains Mr. Lovas. While this does extract from the talent pool, there is a value to those connections made around the globe.

Toronto talent working abroad should be encouraged to eventually return to the region, and bring with them the highly valuable global experience that businesses continue to seek. Toronto Homecoming is an initiative that connects Canadians working abroad (and those with ties to Canada) to professional opportunities in the Toronto region. High calibre candidates working in competitive markets such as, Hong Kong, London and Singapore, apply to attend a weekend networking event with many of the region’s top employers, including KPMG, Rogers, RBC, and TD. This collaborative effort is an example of the ‘out of the box’ methods many companies are using to connect with top talent as competition becomes more fierce for attracting the right people.

As Toronto continues to build its position as a globally competitive, world-class city-region, our human capital will continue to be a driving force. To be ready to fill the high skill, high quality jobs that will open up in the next decade, companies will need to find new ways to attract, develop and importantly retain the next generation of talent, so that we can continue to evolve our global competitive edge.

]]>Wed, 15 Jul 2015 20:36:00 +0100Janet De Silva - President and CEO of Toronto Region Board of Tradehttp://www.odgersberndtson.ca/ca/news-knowledge/article/janet-de-silva-president-and-ceo-of-toronto-region-board-of-trade-8867/http://www.odgersberndtson.ca/ca/news-knowledge/article/janet-de-silva-president-and-ceo-of-toronto-region-board-of-trade-8867/Janet De Silva is the President & CEO of Toronto Region Board of Trade, the chamber of commerce for Canada’s largest urban centre, representing the business interest of 12,000 members and 200,000 business professionals across the Toronto region. Prior to joining the Board, Janet was Dean of Ivey Asia, leading the Hong Kong campus and Mainland China operations of Ivey Business School (Western University), with responsibility for the school’s programs, overall development and expansion in Asia.

Before Ivey, Janet was the CEO of Sun Life Financial’s business in Hong Kong, and its Mainland China joint venture. She also served terms as Chair and President of the Canadian Chamber of Commerce in Hong Kong and Chair of Canada China Business Council, Beijing. In 2007, she was named one of Canada’s Top 100 Most Powerful Women.

Raised in Kitchener-Waterloo, Janet holds an MBA from Ivey Business School of Western University and served on its Asian Advisory Board for 10 years before assuming the role of Dean. She is presently a non-executive director on the boards of Intact Financial Corporation (TSX:IFC) and Blue Umbrella Limited.

One of your early roles with Sun Life in Canada was VP of Individual Sales. At the time, that made you the first woman in North America to be running an agency sales system of any life insurance company. How was that experience?

“A Lady? A lady running an agency?” was the reaction from the wife of our top UK agents. Not only was I the first woman, I was also significantly younger than any of the regional heads or branch general managers reporting to me.

You later rose to become CEO of Canadian Sun Life Financial's business in Hong Kong and then its mainland joint venture. What were some of the leadership lessons you learned from those assignments?

My international assignments transformed me. It helped me know what I don’t know. As a “nice and tolerant” Canadian, it helped me understand that when something doesn’t make sense by asking a question or two to understand “why”, there was either a good reason for why things happened the way they did or there was an acceptable case to change things.

With the growth potential of Asia, I was suddenly facing competition from top companies from all over the world. My assignment in Hong Kong was to transform an underperforming business by introducing new products and distribution channels. I learned about the importance of relationship building in an Asian culture. Where the business culture of Canada is more aligned to time management and therefore not wanting to waste other people’s time with idle discussion, Asia was much more about getting to know business stakeholders, personally, before doing business.

Where my previous experience in mature markets like Canada and Hong Kong was to deliver financial improvements through downsizing, operational efficiency projects and costs control, China was all about growth. I was there during the post-WTO era which opened up expansion opportunities to foreign insurers. I had to learn quickly what it meant to attract, develop and retain talent in an environment where all insurers were expanding and so a 30 percent industry average turnover rate would be a business de-railer if we couldn’t fix it. We introduced a “Career Passport” program that was very visible about our growth, our career opportunities and the learning opportunities we could provide. Within 3 years we dropped to a staff turnover rate of 9 percent, the lowest in the industry, and saw 75 percent of our hires coming from staff referrals.

When you were Dean of Ivey Asia, the school aggressively expanded in mainland China. How difficult was that?

We were competing against some of the world’s top university brands – Harvard, Chicago Booth, INSEAD, Kellogg and IMD. Canada has an amazing education system. Among the G8, we invest the highest percent of our GDP in education, but we don’t promote this and therefore haven’t established a brand identity in Asia. Ivey is a case method school. The school’s case library is second in size only to Harvard, and in, fact Ivey’s Asian case library is larger. As with my Sun Life experience, much of developing Ivey in China was about creating a brand identity for Ivey and Canadian education. Ultimately, Ivey’s reputation as a top case-method school became valued for the practical, experiential programs it could offer. And, the willingness of our faculty to deliver programs in Chinese, through simultaneous translation and investments in translating out cases into Chinese, yielded dividends for us.

You have now taken on an exciting role at the Board of Trade. How are you hiring for the organization? What are you looking for?

I’m looking for diversity of experience, commercial experience and a true belief in our ability to make a difference. Two of our recent executive team hires, through the amazing support of Sal Badali at Odgers Berndtson, brought in great complimentary skills. Gillian Smith, our new VP, Membership who was previously CEO at the Institute for Canadian Citizenship, is a dynamo who brings outstanding leadership skills and a strong understanding of our amazing newcomer community. Doug Goold, our new VP, Policy, Public Affairs and Communication; brings an amazing mix of experience. He has strong Indian diaspora experience through the Asia Pacific Foundation, and he was the former President of the Canadian Institute of International Affairs and former Editor of the Report on Business (ROB) and ROB Magazine.

What career and life advice do you give to women who want to become CEOs and join Boards?

This is a question I have often been asked. And, I should mention that China was fascinated by the fact that a Fortune 500 company would send a non-Chinese woman to China to run a joint venture. The Chinese Chair of our joint venture told me it challenged their perception of the West and what they perceived was the glass ceiling applied to women in business in the West. I’ve never felt that gender was a pro or a con during my career. Having been asked this often over the years, here’s my top 5 advice points for women who want to be CEOs and ultimately join Boards:

Get strong P&L experience.

Get international experience – this will give you amazing perspectives and new ideas to apply to your home market or any market.

Look for opportunities to build your board experience through subsidiary and non-profit boards.

“Marry well” (not rich – but well). Choosing the “right” husband has been key to my success and to any of the amazing women leaders I know. My husband has been my strongest supporter and puts the balance in our family home life when I have needed to travel, be on the road for extended periods or even relocate for a new assignment months ahead of the family.

Completing executive education, like when I completed my Executive MBA, which rounded out my skills and experience and gave me access to similar-stage executives across a range of industry sectors.

What leaders have influenced you the most in your career?

I wouldn’t dare try to share a list for fear of missing someone. My parents, absolutely, influenced my value system and sense of personal accountability. But quite frankly, I find that everyone I meet influences me – some in positive ways and some (in the minority) who show me what I don’t want to be in terms of behavior and relationships. But, overall -- cliché I know -- I’ve learned that the world is an incredibly small place. You never know if the person you initially didn’t “click” with may someday be a major center of influence and network for you. So, I believe I have found a way to work with many different styles. And I’ve learned to take a lesson away from every interaction.

What do people mostly get wrong about Hong Kong?

Canadians without Asian experience don’t always understand the situation facing people in emerging markets and tend to judge things by the way we do things in Canada. Relative to emerging markets, we are a wealthy nation and benefit from levels of lifestyle, political development, healthcare and other social programs that are as of yet unavailable in many Asian countries. People in emerging markets want what we have – the chance to get out of poverty, become self-sufficient and be in control of their destiny. For them, this may initially mean doing things differently than we do in Canada. Because it is different doesn’t mean it’s wrong. In many cases it is reflective of a different stage of development, something that Canada went through generations ago. The Economist reports that over the past 20 years over 1 billion people in emerging markets have been lifted out of poverty due to the benefits of globalization and trade. China represents 75 percent of this number. Ultimately, these growing middle classes are influencing the development of their societies and as they progress can be expected to achieve more of the lifestyle conditions we are fortunate to enjoy in Canada.

When we last chatted, you mentioned your strong interest in rugby that came from your experience living in Hong Kong. Explain!

Rugby is to Hong Kong what hockey is to Canada! Rugby has been played there for more than 150 years, a tribute to its British history. Hong Kong is home to the world’s largest mini-rugby league with almost 5,000 children between the ages of 4 and 12 playing. Our son, Jake, got interested through some of his school friends. He and my husband, Yves, spent weeks watching YouTube videos to learn about the game when he first entered the program. He’s now passionate about the sport and was selected for Hong Kong’s National Development Program. With our family move back to Canada, our son will be going to Shawnigan Lake School, Canada’s rugby school!

When Kognitive Marketing was introduced to Odgers Interim, the small business had become a victim of its own success. It had been named the fastest-growing marketing company in Canada in 2014 and ranked in the top 10 of the PROFIT 500 list, but it was also experiencing significant growing pains.

“We were doing really well but we needed help taking our business to the next level,” says Josh Singer, president of Kognitive Marketing. The payroll was still being processed manually and commissions and core operations were managed using spreadsheets, a system that made sense for a small start-up but not for a company with 500 employees. The Kognitive team was looking for senior financial guidance to help match systems and processes to the new scale of operations, but a full-time Chief Financial Officer (CFO) was not in the budget.

Some of the company’s advisory board members suggested hiring an interim CFO. “The idea was to recruit someone at the CFO level to do the strategic work on a part-time basis,” explains Josh, “so we were not paying a full time salary.”

Understanding Client Needs

With most of its employees under 30, Kognitive has a high-energy, youthful culture. The team wanted someone who could work effectively within that environment to help them get to the next level, and turned to two search firms before hiring Odgers Interim: “We had four people presented to us. The top two we chose were from Odgers.”

Josh praises Jason Peetsma, Managing Director at Odgers Interim, for steering a swift and focused selection process that found the right fit at the right budget. “Jason really understood our needs. He delivered quickly and delivered the right people. He was bang on, and made the process much quicker than if we had done our own internal search.”

With Jason’s help, Kognitive hired Joe Prodan, a proven CFO who had already worked with three high-profile and rapidly expanding start-ups including Bell ExpressVu, Sirius Radio, and Mobilicity. His experience of helping companies through the sometimes painful transition to success gave him the insight to guide Kognitive along a similar path. Joe joined the Kognitive team working three to four days a week for four months.

Delivering Rapid and Impressive Results

As an interim hire, Joe worked on compressed timelines to identify technology solutions that would allow the business to grow further, such as a new payroll system and a redesigned commission engine. “After only three days on the job, he knew at a high level all the things we had to get done.”

Josh credits Joe’s strategy with helping the company to significantly increase its revenues and profitability. Joe continues to act as an advisor, so the Kognitive team can tap into his senior-level expertise as needed. Using his intimate knowledge of Kognitive and subject matter expertise, Joe helped shortlist a CFO candidate who could carry out the company strategy over the long haul.

“We would have never found Joe without Odgers,” says Josh. Having seen the benefits first hand, he now urges smaller businesses that can’t afford a full-time CFO to consider an interim high-level hire who will position them for future growth. “Always hire amazing talent. It will pay for itself.”

On Monday, June 22nd, close to 100 HR leaders gathered together to attend a breakfast event hosted by Odgers Berndtson in Toronto. “Unearthing Leadership Talent” featured guest speaker Dr. Tomas Chamorro-Premuzic, an international authority on psychological profiling and talent management, and the CEO of Hogan Assessment Systems. At the event, Dr. Chamorro-Premuzic shared his ground-breaking research on the linkages between personality, leadership and organizational performance. This led to a very fruitful discussion about personality assessment and leadership development within the context of organizational culture. Eric Beaudan, who heads up Odgers Berndtson’s Global Leadership Assessment Practice, introduced Dr. Chamorro-Premuzic and talked about the importance of Hogan tools in Odgers Berndtson’s work with leaders and leadership teams across Canada, and globally. Attendees included senior HR people from TD insurance, RBC, SNC Lavalin, Mazda Canada, Aon Hewitt, Deloitte, Walmart, PepsiCoFoods, Ontario Medical Association, University of Toronto Schools, and Postmedia Network Canada Corp.

]]>Mon, 06 Jul 2015 15:48:00 +0100Want to be CFO one day? You need to take control of your careerhttp://www.odgersberndtson.ca/ca/news-knowledge/article/want-to-be-cfo-one-day-you-need-to-take-control-of-your-career-8797/http://www.odgersberndtson.ca/ca/news-knowledge/article/want-to-be-cfo-one-day-you-need-to-take-control-of-your-career-8797/By Hugh Arnold and Ross Woledge

Sometime in the last decade the role of the CFO morphed from number cruncher to powerbroker. Gone are the days of the lonely accountant, kept isolated from the rest of the company. Today, the world's most successful CFOs are innovators who command a room and are sounding boards for the CEO. For aspiring CFOs this raises the question: Am I on track to become this valuable strategic partner?

A recent study we conducted explored this very question. In the course of our research we heard time and again that today's aspiring CFOs need to go beyond their core finance acumen to develop broader operational proficiency, greater knowledge of the business as a whole and wider experience with external stakeholders.

As Brian MacDonald, a former CFO now serving as CEO of Hertz Rental Equipment, told us, "Getting to CFO is 80 per cent functional/technical and 20 per cent leadership skills. Once in the CFO chair this equation is turned on its head." So what steps should Canada's top finance talent be taking as they chart their course to the C-suite? Here are four things we recommend to all aspiring CFOs.

Go beyond your accounting designation

CFO candidates often think "OK, I've got my accounting designation, I'm ready to go." But for today's CFO, the accounting designation is table stakes. Since 2004, Canada's top 100 publicly-owned companies have seen the CFO steadily acquiring more accounting designations (70% had an accounting designation by 2014), while the MBA has actually been declining (in 2014 24% had a Master's degree). Obtaining a CPA designation is important, but this alone is not enough.

Aspiring CFOs should consider adding a CFA to develop their capital markets skills and/or pursue an MBA or finance-specific leadership development program to develop their strategic and operational thinking. Having a powerful academic combination will help demonstrate your ability to think beyond the numbers and help you stand out from the crowd.

Take a "corkscrew" approach to your career

While education is fundamental, successful CFO candidates are primarily shaped by the quality and diversity of their career experience. Some of the best-in-class companies we spoke to regularly move their finance talent around the business, giving them exposure to different financial and operational areas and issues. Google's finance people do three-year rotations, while General Motors deploys their finance talent to areas of the business that are the most challenged.

As an aspiring CFO, you need to seek out as many different and varied experiences as possible. Consider a temporary move outside of finance to another function and don't be afraid to change industries if the opportunity becomes available. This "corkscrew" career path, taking you across different functions rather than simply vertically upward through finance, ultimately creates a CFO who is business savvy, operations focused and strategic. It is these CFOs who deeply understand how the company really makes money, not just how to read what shows up on the income statement.

Hone your stakeholder relations skills

Our research indicates that newly appointed CFOs have typically had limited interactions with key stakeholders such as investors, audit committees, investment bankers and the media. Aspiring CFOs should not wait to be asked for exposure to these key audiences, but should actively look for opportunities to engage with them at every opportunity.

Consider spending some time in Investor Relations to hone your media and communications skills. Push to attend board and audit committee meetings with the CFO when appropriate. Ask to sit in on meetings with investment bankers or key investors as they arise. Getting to know the key stakeholders you will need to interact with as CFO, as well as gaining an appreciation for their priorities and objectives, will enhance your likelihood of being chosen for the CFO role and will also accelerate your effectiveness once on the job.

Take risks and have an opinion

CFOs are traditionally seen as rule-driven, process oriented, and not particularly comfortable in the limelight. But when we reviewed the psychometric profiles of close to 300 top CFOs and finance executives from around the world, we found their profiles highly similar to business development executives and entrepreneurial CEOs. They are, in fact, quite flexible, open to change and able to deal with ambiguity without getting flustered. And the data also shows that top CFOs are often the voice around the executive table that calls for change and encourages others to think outside the box.

Bobby Kwon, SVP at George Weston Limited, pointed out to us that "the CFO needs to strike a constant balance of being an advocate while also being a challenger." Are you an active and vocal contributor around the executive table in your firm? Are you recommending non-traditional options, encouraging sensible risk-taking and looking for innovative solutions whenever possible? In addition to proposing new ideas yourself, do you actively engage in constructively honing, shaping and testing other people's ideas and assumptions? The CFOs of tomorrow are focused on the journey as much as they are the destination. Be one of them.

Hugh Arnold is the former dean of the Rotman School of Management at the University of Toronto, adjunct professor of organizational behaviour and HR Management and Academic Director of Business Leadership for Finance Executives Program. Ross Woledge is CFO Practice Leader for Odgers Berndtson in Canada and is a senior member of the Financial Services practice.

A recent study conducted by Odgers Berndtson on the changing role of the CFO in Canada revealed that in today’s dynamic business environment much is expected of the CFO, going far beyond traditional finance skills. Today’s successful CFOs play a unique role as partner to the CEO, as a business influencer with the leadership team, and often as a change leader for the organization. In short, CFOs have evolved from good to great

Q. WHAT’S DIFFERENT ABOUT THE PROFILE OF TODAY’S CFO?

A. We worked with Hogan Assessment Systems to review the psychometric profiles of close to 300 top CFOs and Finance Executives in Canada, the Unites States, Asia and Europe. We looked at personality tendencies, stress-related risks, and personal motives and values.

We found two trends that surprised us about today’s CFOs:

Their profiles are more similar to that of business development executives or entrepreneurial CEOs than to that of budget- or control-oriented individuals. They are more flexible and open to change, and able to deal with ambiguity without getting flustered.

They are more highly adept at building (and maintaining) relationships than we might think,including relationships with the CEO, Board of Directors and external stakeholders such as investors and analysts.

Q. HOW DO CFOs COMPARE TO OTHER LEADERS?

A. When we compared these results to the profiles of all top executives, we found that finance executives have a strong need to improve performance and learn about the business. They are about the same as other executives when it comes to achievement orientation, but they stand out for their inner drive to improve the organization’s bottom line and grow the business. They will stay up at night worrying about the coming quarter or what can be done to increase productivity. Equally important, they have an appetite to find innovative solutions to complex business problems.

Q. WHAT CAN HIGH POTENTIAL FINANCE LEADERS DO TO DEVELOP THESE LEADERSHIP CAPABILITIES?

A. Today’s CFOs must be able to bridge the gap between strategy, execution and finding new sources of value for the organization. This requires three key capabilities:

Strong leadership and business acumen: This can be developed through an MBA or leadership development program, but can also stem from early involvement into the company’s decision-making process.

Broad and diverse experience: Finance leaders need exposure to different parts of the business. Leading change management initiatives or working in other functional areas can provide a rich development experience.

Effective stakeholder engagement: This comes from exposure to the Board and its committees, investors, analysts and the media. Finance executives need to ask for these opportunities so they can hone their communication and political skills.

Highlights from the Odgers Berndtson CFO Survey

The average CFO tenure is 4.8 years when appointed externally, versus 6 years for internal appointments.

In 2014, only 24% of CFOs had an MBA/master’s degree, down from 32% in 2004.

Eric Beaudan is Global Head of the Leadership Practice at Odgers Berndtson and co-founder of the new Business Leadership for Finance Executives Program at the Rotmam School of Management.

]]>Thu, 18 Jun 2015 19:39:00 +0100Rod Phillips - Chair of Postmediahttp://www.odgersberndtson.ca/ca/news-knowledge/article/rod-phillips-chair-of-postmedia-8735/http://www.odgersberndtson.ca/ca/news-knowledge/article/rod-phillips-chair-of-postmedia-8735/Rod Phillips is currently the Chair of Postmedia, Canada’s largest newspaper company. More recently, Rod was the President and CEO of the Ontario Lottery and Gaming Corporation (OLG), where he launched the modernization strategy of the $6.8B revenue agency. Prior to OLG, Rod was the President and CEO of Shepell.fgi, leading the growth and eventual sale of the workplace health and productivity company to Morneau Sobeco for $322M. He also served as Chief of Staff to Mayor Mel Lastman during his first term as leader of the newly amalgamated City of Toronto.

Rod currently sits on the boards of Discovery Air Inc, Data Group Limited and the newly listed Special Purpose Acquisition Corp (SPAC). Active in his community, he is Chair of the Greater Toronto CivicAction Alliance and the TELUS GTA Community Board. Rod is also a member of the board of the Toronto International Film Festival (TIFF) and was Vice-Chair of Mayor John Tory’s Transition Team following his election in 2014.

Tell us about your early years growing up. Were you in any leadership roles at a young age?

Growing up in the suburbs in the 80’s, working at the local pools was a great job for a teenager. To be a manager, you had to be willing to change the chlorine gas tanks at the pool. I think that I was one of the few who would do it so I got to be a manager. As they say, leadership takes courage.

How, if at all, did your parents influence your leadership style?

In our family, expectations were clear and support was consistent – win or lose. You only failed if you didn’t learn or gave up. Our family was a safe place and haven to learn and to grow up. As a leader, I work to be consistent and provide a safe environment that lets others meet their potential.

When you were at Western/UWO for your undergraduate studies, did you have an idea what you wanted to do for a career?

No. I wrote the LSAT and GMAT and even the Foreign Service exam. So, it’s safe to say I wasn’t very clear on my career track. I eventually did complete an MBA, but that was after some time in the working world where I developed my interest in business and an understanding of what makes an organization work.

How did you land the role as Chief of Staff to Mayor Mel Lastman?

That’s a funny story. I was working at KPMG in Toronto in 1997 and I received a phone call from Paul Godfrey, then Publisher of the Sun newspapers. Paul was building the team to lead Mel’s campaign for Mayor and had heard about my volunteer efforts in provincial and federal elections. I eventually said yes, but only after Paul committed to Bill MacKinnon – the KPMG Managing Partner at the time – that he wouldn’t call and ask me to be the Chief of Staff if Mel won. When we won, Paul had Mayor Mel make the call to Bill, who was of course entirely good natured about the whole thing.

It was fascinating to return to the City of Toronto as part of Mayor Tory’s Transition Team last November, 15 years after serving as the first Chief of Staff in the newly amalgamated city. You don’t often get to see first hand what worked and what didn’t a decade and a half later. The city has come a long way from those early days, thanks to the efforts of many hardworking people.

Over the eight years you were President and CEO of Shepell.fgi, the business grew significantly. How do you recommend CEOs manage in a high growth environment?

Shepell.fgi’s growth as a business tracked the need for thousands of employers to improve workforce productivity and control health-related benefit costs. We created new products and grew our existing business lines by anticipating and responding to the pressures on our customers. That kind of growth also means your systems need to scale to keep pace. Knowing when and how much to invest in the people and the infrastructure to support growth are make or break choices for the CEO and their board.

For three years you led the OLG, a multi-billion dollar crown corporation. How does leading a government agency differ from a traditional business?

Operating a gaming monopoly has the advantage of limited competition. But in global, digital markets even the monopolists’ advantage is fleeting. The prevalence of online gambling and the success of cross border and destination casinos meant the management team and board needed to modernize OLG’s business model by injecting private management and capital.

The biggest difference, however, is how your shareholder judges risk and return. When the government is your shareholder, return is measured on more than the economic value created. Periodic changes in government leadership mean that expectations for any of these variables can change overnight, adding a type of volatility uncommon to a profit motivated enterprise. All of this impedes value creation in the traditional private sector sense and is why some of the best business people have trouble making sense of government.

What are some of the leadership lessons or career advice that you have learned over the years?

Mentors matter. Choose them carefully and don’t forget to return the favour.

What is your priority when you hire?

Experience is important put passion matters more. Given the requisite credentials, there are few things that can’t be done with the proper motivation and very little that gets accomplished without it. Judging what really motivates a potential hire and how that fits with your organization is any hiring manager’s biggest challenge.

If you could ask somebody only two questions in a job interview, what would they be?

Describe for me an experience where you were unsuccessful meeting a professional objective. Why didn’t you succeed? What did you learn?

Imagine we are one year from now. What is it about this job you enjoy the most? What don’t you like?

You serve on many boards. Which of them is the most interesting?

With the acquisition of Sun Media, Postmedia has been the most involved for the last year. The injection of new equity and the significantly expanded publishing footprint resulting from the acquisition has given our exceptional management team an improved platform in a challenging industry.

The most interesting board right now is INFOR Acquisition Corp., a newly listed public company seeking to identify and close a midmarket acquisition over the next two years. Response from investors has been quite positive and we are on track to raise over $200M. While the SPAC structure is well established in the U.S., this is only the second in Canada. It is a great board and I am looking forward to investing and working along side some truly accomplished entrepreneurs and investors including Brian Gibson, Bill Holland, Steve Hudson, Neil Selfe, Steven Small and Richard Venn.

PwC Canada’s Sandra Pupatello discusses how diversity in the boardroom leads to a good dynamic and better decisions with Founder of the Canadian Board Diversity Council, Pamela Jeffery and John Sanders, Partner in the Board Practice at Odgers Berndtson.

Corporate Canada faces growing pressure to make boards of directors more diverse and inclusive. As of December 31, 2014, seven provinces and two territories had adopted new Ontario Securities Commission rules that require public companies to disclose the number of women on their boards and in senior management positions – and explain how they’re supporting board diversity.

Pamela Jeffery, Founder of the Toronto-headquartered Canadian Board Diversity Council, and John Sanders, a Toronto-based Partner in the Board Practice at executive search firm Odgers Berndtson, recently discussed the changing landscape with PwC’s Sandra Pupatello. Chair of Hydro One Networks Inc., Pupatello was a member of the Legislative Assembly of Ontario from 1995 to 2011.

Sandra: In the last six months, I’ve heard more about the issue of board diversity than I ever have. Why is this such a hot-button topic?

Pamela: Governments are now taking a more active role. The federal government flagged this as an economic issue. In Ontario, the provincial government did the same. And then the Ontario Securities Commission acted quickly with its comply-or-explain plan for women on boards.

Sandra: But are companies doing this out of fear of the regulator or because it truly is good for business?

John: I think it’s good business, and I think it’s been good business for a long time. But organizations have been trying to measure the impact between HR policies and shareholder value for years, and it is difficult to measure.

Sandra: It’s a lot easier to understand if you are a business that works directly with the consumer.

Pamela: You’re absolutely right, Sandra. If you’re customer-facing like retail or finance and insurance, it’s easier to perhaps understand why you want to have that customer understanding represented on your board. Research shows that women are making or influencing 80 per cent of purchasing decisions. That is a key driver for boards, but it goes beyond that. It’s difficult to say that because a company has a diverse board, its financial performance improves. What is important to note is that companies with diverse boards have better financial performance, so there is a clear correlation. If you have more diversity around the table, you’re going to have more perspectives and you’re going to have better discussions. We say that better discussions will naturally lead to better decisions.

John: There’s no doubt the discussion is more robust and goes into areas it might not otherwise go when board composition is diverse. Research on small group dynamics shows that the desire to avoid conflict is significantly higher in homogeneous groups.

Pamela: Eighty per cent of board seats are filled by the directors themselves, and 20 per cent are filled by search firms through a more rigorous process. Women who come on boards are much less likely to come through the old boys’ club, and those women are likely much more independent. They are able to present a point of view without worrying about harming existing relationships. What you want is independent directors at the table.

Sandra: And directorships tend to come from people who have had executive positions. As we say in politics, you have to increase the pool to pick from.

John: That’s an important part of the conversation. You can have a diverse board, but you really have to ask if that’s going to drive participation of women in the executive group. I think that’s where the rubber hits the road. The board has an oversight function, but its management’s responsibility under the care of the board is to drive business results. And if we believe that having women participate can produce better decision making, that’s got to be at the senior management level, as well as the board. And then that in turn will increase the talent pool.

Sandra: If you had to give companies one bit of advice on this matter, what would it be?

Pamela: I would tell them to undertake a rigorous process to identify skill gaps and to identify the best candidates in the entire talent pool to address them – and to ensure that there are candidates who are non-traditional in the process. They should define how many non-traditional candidates they are going to consider to try to get at that bias we all have, which is that we tend to like to hire people who look like us. So, to cut through that, we recommend that boards consider at least three candidates who are diverse for each open board seat.

John: It’s good common business sense to recognize that the composition of the country is diverse and that there are multiple stakeholders. There’s an orientation coming up in the next generation to look at concepts such as diversity not as something foreign or new, but as a reality of day-to-day life. Those are the customers of the future, and there is now an opportunity to make sure that the tone at the top and the corporate message reflect the values of the current generation and generations that are coming up. The end result will make a better organization and a more robust business going forward in all sectors. It is a recognition of where we are and where we’re going.

Sandra Pupatello is Chair of Hydro One Networks Inc., CEO of WindsorEssex Economic Development Corp. and Director of Business Development and Global Markets for PwC Canada. Sandra’s depth of experience, network of business contacts and public profile allow her to serve PwC’s clients domestically and abroad.

Expert Opinion: Pamela Jeffery is the Founder of the Toronto-headquartered Canadian Board Diversity Council. John Sanders is a Toronto-based Partner in the Board Practice at executive search firm Odgers Berndtson.

]]>Fri, 15 May 2015 16:47:00 +0100Johann Koss - President and CEO of Right To Play Internationalhttp://www.odgersberndtson.ca/ca/news-knowledge/article/johann-koss-president-and-ceo-of-right-to-play-international-8662/http://www.odgersberndtson.ca/ca/news-knowledge/article/johann-koss-president-and-ceo-of-right-to-play-international-8662/This month we focus on Johann Koss. Johann is the Norwegian-born President and CEO of Right To Play International (“RTP”), an organization that promotes sport and play globally as a tool for positive childhood development in areas of disadvantage. Operating in more than 20 countries, RTP reaches more than one million children each week through hundreds of staff and thousands of volunteer coaches.

Before RTP, Johann was a former Olympic speed skating world title holder who shared Sports Illustrated magazine's Sportsman of the Year award in 1994. In 2012, Johann received the Ernst & Young Entrepreneur of the Year Special Citation for social entrepreneurship. In 2011, Time Magazine named him "one of 100 future leaders of tomorrow" and he was declared a Young Global Leader by the World Economic Forum.

Johann trained as a physician at the University of Queensland in Australia and later completed his Executive MBA at the Rotman School of Management (University of Toronto). He is currently a board member of Gates Ltd, Dundee Industrial REIT and Secunda Inc.

Q: According to leading psychologists, sports may provide more effective training than any business school education for tomorrow’s successful CEO. Do you agree?A: Johann Koss: Sport isn’t better than business school, but there are clear areas where a sport background is helpful: 1) resilience, as individuals who have been in sport understand that, when trouble arises, they can work harder and get out of it; 2) teamwork, as athletes understand that you can’t win alone; and 3) goal setting and vision, as athletes have no problems setting long-term goals and working towards them diligently.

Q: Born in Norway, educated in Australia and now CEO for a not-for-profit in Canada. Quite a journey! Can you shed light on how you got here, and why Canada as your latest destination?A: Canada has the best multi-cultural background setting for starting a global non-for-profit and has a large amount of talent. The country has a good reputation and position internationally due to years of great international work. There has been tremendous support for RTP and the understanding that sport and play can really benefit children’s upbringing even in the most disadvantaged areas of the world. I have enjoyed living in three different countries and can say that Norway, Australia and Canada have more similarities than differences.

Q: You went through medical school to, well, practice medicine. Or did you always know you'd become a CEO? A: I thought I would become a doctor and not a CEO! When I found that no children in the most disadvantaged areas of the world play or benefit from sport, I needed to start a global organization that would do this. I used both my background in sport and medicine as a starting point to make it a high quality impact organization with large scale. With my MBA from Rotman I was able to drive new skills and growth into the organization.

Q: What leaders have had the greatest impact on you - and why?A: There are several types of leaders that have had impact on me - from visionary leaders like Mandela and Gandhi and others like them, to great operational business leaders who can successfully implement a vision and make things happen. I am always impressed with people who not only talk a good game, but deliver on its promise and drive change.

Q: What kind of leader/boss are you?A: I am a transparent visionary leader that makes things happen. It is important to both be a leader and a manager, as the CEO job requires both. It goes from bouncing back from failures and mistakes, setting goals and directions, correcting behaviour issues and finally leading the culture of achievement. I ask, listen and empathize, and, when needed, make difficult decisions. As a leader, I look at things from 30,000 feet and have the ability to get into the details when needed.

Q: You recently decided to step down as CEO of RTP for a new challenge in the private sector. Which of your skills and competencies will transfer well to the private sector as a CEO? What challenges might await you?A: We are still looking for a new CEO at RTP so I have not stepped down yet and I will work through the transition with the new CEO to make sure it will be a successful one. I believe there are very many transferable skills between leading a not-for-profit organization and a for-profit one. All general skills are very complementary such as talent management, motivation of staff, and organizational effectiveness and efficiencies. I believe personal skills such as being authentic, goal oriented and hardworking will benefit me in a for-profit setting. I believe my biggest challenges will be to learn a new industry and understand the public market and some of the main financial tools that can be used in a business setting. The not-for-profit is always a cash business and we have very limited amount of financial tools to advance and grow the mission of the organization therefore fiscal responsibility is critical. I believe there should be new options for growing impactful not-for-profit organizations through new financial tools similar to for-profit organizations.

Q: You're a father, with three young children. Has fatherhood made you a better leader? If so, how has it?A: I have three very young children and what I have not learned before about myself, I am learning now. Particularly, my own personal limitations are exposed while trying to raise three children under five. I believe very much in nurturing child development. My ability to listen to and reflect on the children’s ideas and on a number of obscure issues has given me an additional tool and ability to improve my open question technique and to check if agreement has been made.

Q: What do Canadians most get wrong about Norway?A: That it is colder in Norway than Canada. It is much colder in Canada! That might surprise many, but due to the gulf stream, Norway is a great winter nation, but not with the extreme cold weather we get here.

Q: Last question – What is the one thing people often get wrong about you?A: That I should be a good hockey player, since I know how to skate. The problem is that I can only turn to the left and have never held a hockey stick before. So I am a great novice on the ice when it comes to hockey, which is somewhat surprising to people.

]]>Wed, 22 Apr 2015 14:17:00 +0100“The Age of the Generalist is Over”http://www.odgersberndtson.ca/ca/news-knowledge/article/the-age-of-the-generalist-is-over-8583/http://www.odgersberndtson.ca/ca/news-knowledge/article/the-age-of-the-generalist-is-over-8583/

Carl Lovas, Chairman of Odgers Berndtson Canada, describes how the firm’s recent restructuring has made them stronger than ever

How do you differentiate yourself in a world where technology and social media are threatening your business?” asks Carl Lovas, Chairman of Odgers Berndtson Canada. This is the question on the lips of many of the AESC’s members – global and boutique firms. Although the relevance at senior level can still be questioned, social media sites like LinkedIn create a perception that clients can identify candidates without an executive search firm, while the Global Financial crisis created an economic environment where this had to be put to the test. Some commentators have gone so far to suggest that social media marks the beginning of the end for executive search.

But while the executive search profession has faced a degree of disintermediation from these factors, firms like Odgers Berndtson in Canada are still posting record figures. Lovas explains that business was up 40% last year, making 2014 one of the most profitable years in their history. “We’ve gone into 2015 with extraordinary momentum,” he says.

“The Age of the Generalist Is Pretty Much Over”

Odgers Berndtson is a centrally-owned global firm, with a presence in 27 countries. It believes that its local expertise provides executive search partners who are more attuned to their clients’ specific regional needs, while benefiting from the brand and reach of a global firm. Lovas explains that the firm has shifted its mindset to becoming industry, as well as geographic, specialists.

“Executive search and the professional services sector is changing. The age of the generalist is pretty much over. Clients are no longer prepared to pay for articulate, bright people to show up and say they’ll fix the business. They expect someone to show up with in-depth knowledge and start adding value in the first minute. You do that by adding deep sector expertise. We knew we had to integrate.”

To succeed with this plan, Odgers Berndtson Canada has marked the last 14 months with numerous milestones: launching three new practice areas (a CFO practice, a board recruitment practice and a mining practice), opening two brand new offices in Western Canada and, acquiring Renaud Foster to build a presence in Ottawa, while expanding their leadership assessment and executive interim practices nationwide.

Lovas explains that implementing a strategy focused on industry and functional specialists “was like taking the brakes off – all of a sudden we started to gallop. Not only has our business increased dramatically in terms of financial results, but also the quality and level of the work we’re doing.”

Winning Hearts and Minds

Lovas is a realist who is attuned to the changes taking place in the executive search profession. He believes that the value proposition for executive search firms has changed in recent years, resulting in search firms having to fight harder to win business. “Under- standing what makes a great CFO, understanding why a CFO is a great fit for an organization, and getting that CFO to return your calls is a key differentiator," Lovas says.

In order to position themselves as sector and industry specialists, Odgers Berndtson has launched a range of new initiatives that, collectively, seem to speak to the hearts and minds of their clients. It has just announced its partnership with Rotman School of Management, Canada’s number one business school according to the Financial Times, on a new five-day leadership course for CFOs. The firm and the business school worked with leading CFOs, CEOs and audit chairs to design a course that will help participants develop the core skills that are central to individual and team success in the finance function.

Furthermore, the firm has rolled out its leadership assessment services across the country, as part of Odgers Berndtson’s national and global strategy to develop stronger relationships with their clients. “My thinking has always been that executive search was handicapped as a one product business,” Lovas says. “Even the largest organizations can have long periods of time where they don’t have a significant executive search. A broader service offering allows you to stay relevant and engaged with clients between searches. And assessment leads to better search work. If you’re better at assessing talent, you will do better search work and clients will put you in a different league.”

Lovas explains animatedly that he was recently approached by one of Canada’s largest banks. They had appreciated the firm’s assessment techniques so much that they asked Odgers Berndtson to provide the same service for all internal promotions. “Can you imagine the benefit that has?” he asks. “We’re always at the table!”

CEO For One Day

Perhaps the most high profile program Odgers Berndtson has launched in Canada in the last two years is the CEO X1 Day scheme. Garnering national news coverage and slots on morning television, the program pairs students in third and fourth year university with 20 CEOs at some of the largest companies in Canada – including GE, Aon Hewitt, and Hugo Boss. The students are put through a rigorous assessment, which Lovas claims rivals the intensity of an executive-level assessment (see box-out), to evaluate their suitability for the program and their fit with the participating CEOs. The winning candidates then spend a full day with their selected CEO to experience leadership first-hand, which, Lovas explains, is as valuable to the CEO as it is to the student.

“CEOs are very interested in how to make their organization friendlier to the generation entering the workforce so that they can attract the best,” he says. “This program gives them an insight into what’s on the minds of the top talent coming out of universities.”

So what is on their minds? Is this next generation likely to be as disruptive to management structures as has been reported? “When you look at the top 10% of any generation, they have much more in common with each other,” Lovas says. “You’ll hear it said that Generation Y is more interested in work/life balance, but when you’re looking at the potential leaders in that generation, they’re as driven and engaged as leaders always have been.”

With CEO X1 Day, Odgers Berndtson has created a program that positions them as experts in leadership, strengthens relationships with CEOs at some of the largest companies in Canada, serves society by investing in the future generation of leaders, and garners public interest. “It is unique to us,” says Lovas, “and every time I say that I pinch myself.”

So it seems that 2014 was the year that Odgers Berndtson Canada’s strategy kicked in, after five years of planning. By looking at themselves, understanding what they provided and then comparing that to what clients were asking for, they were able to reposition themselves as specialists without losing their geographic spread across the country. By accompanying this with a kind of charm offensive, the firm has found a way to differentiate itself from the recent technological advances and from competition in Canada.